Michigan 529 College Savings Plan

Michigan 529 College Savings Plan

Michigan Education Savings Plan (MESP)

Michigan's 529 investment plan allows investors to save for a beneficiary's college expenses in a way that also provides tax benefits along the way. First, the earnings grow both Federal and state tax deferred. Additionally, Michigan taxpayers can deduct up to $5,000 ($10,000 if filing jointly) from their Michigan adjusted gross income for contributions to a Michigan Education Savings Plan (MESP). If the funds are used for approved educational expenses, the disbursments are also Federal and state tax free.

Managed by TIAA-CREF Tuition Financing, Inc., the MESP provides seven different investment plans to fit almost anyone's risk tolerance. These seven are

Conservative Age-Based Allocation Option

Moderate Age-Based Allocation Option

Aggressive Age-Based Allocation Option

100% Equity Option

Balanced Option

100% Fixed Income Option

Principal Plus Interest Option

The aged based options will change allocations over time as the beneficiary grows towards college age. Should you change your mind about the optimal investing strategy for you, funds can be moved between portfolios once per year.
Get more information on the Michigan Education Savings Plan (MESP) by visiting http://www.misaves.com. You should also check with a financial advisor and tax advisor to see if a 529 investment is right for you.